INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of components of income tax expense

The components of income before income taxes were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Domestic	$	2,347	$	(9,441)	$	(1,872)
Foreign	(5,788)		(4,352)		(711)
	$	(3,441)	$	(13,793)	$	(2,583)

The components of the income tax (benefit) expense are as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Current income tax (benefit) expense:
Federal	$	—	$	(24)	$	—
State	666		339		189
Foreign	225		1,465		170
Total current expense	$	891	$	1,780	$	359
Deferred income tax (benefit) expense:
Federal	$	(4,364)	$	369	$	(1,610)
State	(813)		289		(307)
Foreign	713		(2,199)		112
Total deferred (benefit) expense	(4,464)		(1,541)		(1,805)
Total income tax (benefit) expense	$	(3,573)	$	239	$	(1,446)

Temporary differences to the components of deferred tax assets

Temporary differences that give rise to the components of net deferred tax assets (liabilities) are as follows (in thousands):


	December 31,
	2021		2020
Inventory	$	4,616	$	2,993
Accrued compensation	(70)		295
Stock options	3,581		2,322
Research and development tax credit	1,276		1,308
Research and development expense	3,291		2,571
Deferred revenue	1,390		1,441
Property and equipment	524		298
Net operating loss carryforwards	4,401		8,757
Foreign tax credit carryforward	64		64
Sales-type leases	2,494		1,324
Convertible debt equity component	—		(8,691)
Foreign intangible	(11,477)		(11,311)
Other	(540)		(1,124)
	9,550		247
Valuation allowance	(2,788)		(6,409)
Total net deferred tax assets (liabilities)	$	6,762	$	(6,162)

Effective income tax rate

The Company's income tax (benefit) expense relating to income (loss) for the periods presented differs from the amounts that would result from applying the federal statutory rate to that income (loss) as follows:


	Year Ended December 31,
	2021		2020		2019
Statutory federal tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	3	%	(4)	%	9	%
Non-consolidated Investment Income	8	%	1	%	(2)	%
Foreign income inclusion	—	%	(12)	%	—	%
Non-temporary stock option benefit	49	%	6	%	48	%
Meals and entertainment permanent difference	—	%	—	%	(2)	%
GILTI permanent difference	—	%	—	%	2	%
Other permanent differences	—	%	1	%	(1)	%
Foreign tax rate differences	10	%	2	%	6	%
Change in tax rate	8	%	1	%	(6)	%
Change in valuation allowance	88	%	(4)	%	(17)	%
Other deferred differences	(25)	%	(2)	%	(9)	%
Transaction costs	(4)	%	(6)	%	(6)	%
Executive compensation limitation	(65)	%	(6)	%	(7)	%
Research & development credit	(1)	%	2	%	20	%
Equity Investment	(8)	%	(4)	%	—	%
Change in uncertain tax benefits	11	%	3	%	—	%
Contingent Consideration	10	%	—	%	—	%
Other Foreign Income Taxes Due	(2)	%	—	%	—	%
Other	1	%	(1)	%	—	%
Effective income tax rate	104	%	(2)	%	56	%

Schedule of unrecognized tax benefits roll forward

The following provides a reconciliation of unrecognized tax benefits which are included in Other liabilities within the Consolidated Balance Sheets (in thousands):


	Year Ended December 31,
	2021		2020
Balance at beginning of period	$	(808)	$	—
Acquired additions based on prior year tax positions	(508)		(1,072)
Reductions from lapse in statutes of limitations	404		358
Currency Translation Adjustment	19		(94)
Balance at the end of period	$	(893)	$	(808)